TOWN OF OCEAN CITY

FISCAL YEAR 2020 ADOPTED BUDGET

SERVICE CENTER FUND AND IMPOUND LOT

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BUDGET HIGHLIGHTS:

 

REVENUE:

Fuel revenue is dependent on fuel cost, and the Energy Administration has projected that both gasoline and diesel fuel rates will increase from the rates budgeted in FY 19. Although the number of gallons of each type of fuel is anticipated to decrease, overall fuel revenue increases. Parts revenue has also been projected to increase for FY 20. Labor rates for light equipment are set at $67 per hour and labor rates for heavy equipment are currently $86 per hour. It has not been necessary to increase labor rates for several years. Vehicle labor revenue has also been budgeted to increase for FY 20.

 

PERSONNEL CHANGES:

Nineteen full-time employees are funded in the Service Center budget and there are two full-time positions in the Impound Lot. A step increase effective on January 1, 2020 has been included. Replacement of long-term employees in this division have resulted in savings in full-time salaries. Part-time salaries in the warehouse were funded at $3,500. Funding has been included for a seasonal vehicle technician. In the Impound Lot division, funding for seasonal staff decreased. Allocations for health insurance, retiree health, and retirement increase for this division, while the allocation for worker’s compensation decreases. A tool allowance of $500 per mechanic has been included in the Service Center budget.

 

CHANGES IN OPERATIONS:

Contracted Services expenses are expected to decrease. This category includes building and equipment maintenance, training and travel, printing costs and tipping fees, as well as other contracted services. Training includes attendance at the National Procurement Institute conference for one employee, online training for Purchasing staff, and automotive training for the mechanics. Building and equipment maintenance costs are projected to decrease $1,302. Supplies and Materials increase $3,576. The FY18 budget included the purchase of an electric forklift, and a wireless lift for the garage. An intelligent diagnostic center for the garage was included at $19,000 in FY 19. A tire truck changer has been included in FY 20 at $20,000. Purchases of fuel and inventory are the major expenses in this department. Vehicle fuel is purchased by this department and charged to all other City departments as it is consumed. This expense is reflected in the vehicle fuel line item in all City departments and is a notable cost for Transportation, Solid Waste and Police. Vehicle fuel costs are expected to increase. The number of gallons purchased is expected to decrease by 5,559 gallons. The estimate for fuel purchases increases $50,304 for FY 20. Estimates of inventory for parts and supplies has been budgeted to increase $16,832 for FY 20. Energy costs for this department are anticipated to decrease. Intragovernmental allocations for vehicle lease, IT Services and general overhead increase for this division, while the allocation for insurance decreases.